[SMM] how ArcelorMittal, the world's largest steel mill, is made

SMM12, March 18: global steel giant ArcelorMittal (ArcelorMittal) said this week that it had completed its acquisition of Essar Steel and had a joint venture with AM / NS India) to run the company. At this point, the world's largest steel company has been expanded again.

Mergers and acquisitions continue to move forward

ArcelorMittal Nippon Steel India will become the largest steel company in western India, with an annual crude steel capacity of about 7.5 million tons. AM says it also has an iron ore pellet plant in eastern India and currently has an annual capacity of 14 million tons.

Essar Steel, previously one of India's top five steelmakers, was declared bankrupt and auctioned under federal law enacted in 2017. ArcelorMittal's joint venture with Nippon Steel became the highest bidder for Essar after India's Supreme Court approved its $6 billion acquisition and bankruptcy plan, and cleared all legal hurdles to Essar's acquisition last month.

AMNS India currently has an annual crude steel capacity of 7.5 million tons / year. The company plans to increase shipments of finished materials to 8.5 million tons per year in the middle of operation and to 12 million tons to 15 million tons per year in the long run. In addition, the company also has 14 million tons / year of iron ore pellet mineral energy.

Demand for finished steel in India will grow 5 per cent this year to 101.6 million tonnes and 7 per cent to 108.7 million tonnes in 2020, according to the World Iron and Steel Association. According to forecasts for 2019, India will overtake the US as the world's second-largest steel consumer after China.

The merger of the world's largest steel giant has emerged

ArcelorMittal is the world's best steelmaker, with an annual output of about 118 million tons of crude steel, accounting for about 10 per cent of the world's total steel production and about 209000 employees in 60 countries. Headquartered in Luxembourg.

In February 2002, the three largest European steelmakers, Usinor of France, Arbed of Luxembourg and Aceralia, of Spain, formally announced the merger and formed Arcelor Iron and Steel Group. Arcelor was later acquired by Indian steel mill Mittal, the new company called ArcelorMittal, became the world's number one steelmaker.

Source: world Iron and Steel Association (in millions of tons)

ArcelorMittal takes a stake in Chinese Steel Enterprises

In recent years, with the deepening of China's economy, more and more foreign-funded enterprises come to cooperate with domestic enterprises. As early as 2007, ArcelorMittal became a strategic partner and important shareholder in China Oriental. The iron and steel products of the joint venture company include billets, steel strips, cold rolled plates and other products. Since 2014, ArcelorMittal has successively increased its stake in China Oriental Group by about 730 million shares. After the increase, the proportion of shares has been as high as 54.49%, making it the largest shareholder in the company. However, this has directly led to the illegal listing of China Oriental Group. Although ArcelorMittal immediately reduced its stake in the company by about 220 million shares, its stake was still as high as 46.99%.

ArcelorMittal also has a joint venture with Valin Steel, which initially owned about 33 per cent of ArcelorMittal and about 34 per cent of Hunan Valin. The remaining shares (about 33 per cent) are outstanding A shares listed on the Shenzhen Stock Exchange. ArcelorMittal has been a partner of Hunan Valin since October 2005. At present, the only cooperation between Hualing Steel and ArcelorMittal is the VAMA auto board project. VAMA is a joint venture jointly funded by Valin Steel and ArcelorMittal, with Valin and ArcelorMittal each holding 50 per cent.

Scan QR code, apply to join SMM metal communication group, please indicate company + name + main business